Imposes New Annual Surcharge and New Annual Tax on All Pension Income over $40,000. Initiative Statute

IMPOSES NEW ANNUAL SURCHARGE AND NEW ANNUAL TAX ON ALL PENSION INCOME OVER $40,000. INITIATIVE STATUTE. Imposes on California residents a new annual surcharge (between $5,000 and $50,750) and a new annual tax (between 20% and 60%) on all pension income, including employer-paid health insurance premiums, in excess of $40,000. May impose a one-time additional tax on non-California residents whose pension benefits earned in California in a taxable year exceeds $40,000. Potential annual state revenue increase of up to $18 billion beginning in 2012 and decreasing over time from new taxes on pension benefits. This estimate assumes the proposed excise tax is upheld by the courts. (10-0017.)